Identification of Entrepreneurial Opportunities Based on Yield Gap Reduction and Environmental Footprint Optimization in Wheat Cultivation (Case Study: Mazandaran Province, Iran)
Morteza Esmaili Dazmiri1, Yosouf Niknejad2, Hormoz Fallah Amoli3, Davood Barari3 and Salman Dastan4
1- Ph.D. Candidate in Agronomy, Department of Agronomy, Islamic Azad University, Ayatollah Amoli International Branch, Amol, Iran
2- Associate Professor, Department of Agronomy, Islamic Azad University, Ayatollah Amoli Branch, Amol, Iran (Corresponding author: yousofniknejad@gmail.com)
3- Associate Professor, Department of Agronomy, Islamic Azad University, Ayatollah Amoli Branch, Amol, Iran
4 Managing Director of the Mazandaran Province Farmers’ :union:
Introduction and Objectives: The agricultural sector in Iran faces the dual challenge of increasing production to ensure food security while reducing environmental risks. Wheat, as the main strategic crop in Iran's food basket, provides about 75% of the daily protein and 65% of the daily calories for each person. This crop has the widest cultivated area and plays an irreplaceable role in farmers' livelihoods, serving as the foundation for processing industries such as flour, bread, pasta, and biscuits. Despite this, the average wheat yield in Iran (about 3800 kg/ha) has a considerable gap with the potential yield (over 7000 kg/ha), which is called the "yield gap." This gap is not only a technical-agronomic issue but also a lost economic opportunity and a basis for creating new businesses in the agricultural sector. On the other hand, climate change is largely caused by the excessive consumption of fossil fuels and chemical fertilizers. The agricultural sector produces about 10-12% of global greenhouse gas emissions, and improving energy efficiency in this sector is an environmental necessity. What has been neglected in domestic studies is the view of these gaps as entrepreneurial opportunities and the provision of commercialize business models. The main aim of this study was to identify and quantify entrepreneurial opportunities arising from reducing the yield gap and optimizing energy consumption in wheat fields of Mazandaran province. Specific objectives included estimating the contribution of management factors to the yield gap, calculating energy indicators and global warming potential in four cropping systems, and presenting specific business models with revenue and target market forecasts.
Materials and Methods: Management data of 100 wheat farms were collected through field surveys, farmer interviews, and questionnaires. Farms were randomly selected in a stratified manner to cover all production methods. Agricultural operations from seedbed preparation to harvest including tillage, cultivar and seed rate, fertilizers and pesticides, irrigation, and grain and straw yield were recorded. Grain yield at 14% moisture content was measured by two methods: farmer declaration and sampling with a 1 m² quadrat. To estimate the yield gap, the comparative performance analysis method based on stepwise regression was used. Qualitative variables such as canola pre-cropping, topdressing fertilizer application, and herbicide use were coded as dummy variables (0 and 1). Farms were classified into four cropping systems including conventional, intensive, mechanized, and conservation. Energy balance was performed by calculating direct, indirect, renewable, and non-renewable energy using standard coefficients. Global warming potential was calculated using IPCC emission coefficients and converted to kg CO₂ equivalent per hectare, and cropping systems were compared using LSD test at 5% level.
Results: Six management factors including nitrogen at flowering, potassium, topdressing fertilizer, nitrogen at basal stage, canola pre-cropping, and herbicide had the greatest impact on yield. With optimal management, the predicted yield (3925 kg) increased to 5708 kg/ha, and 1756 kg (80% of the gap) was compensated. The contribution of factors was: nitrogen at flowering (425 kg, 24.2%), potassium (385 kg, 21.9%), topdressing fertilizer (315 kg, 17.9%), nitrogen at basal (275 kg, 15.7%), canola pre-cropping (215 kg, 12.2%), and herbicide (141 kg, 8.0%). The average energy input was 14091 MJ/ha, with nitrogen (5863 MJ, 41.6%), fuel (4123 MJ, 29.3%), and seed (3368 MJ, 23.9%) having the largest shares. Conservation farming used 30% less energy (11494 MJ) compared to mechanized farming (15956 MJ), and its energy efficiency (9.63) was higher than other systems. The average global warming potential was 1406 kg CO₂ eq/ha, with conservation farming emitting 1184 kg CO₂ eq/ha, which was 27% less than mechanized farming with 1626 kg CO₂ eq/ha. The highest emissions were related to machinery and equipment, fuel, nitrogen fertilizer, and seed, and a direct relationship between energy input and CO₂ emission was confirmed.
Conclusion: There is a direct relationship between excessive input consumption and reduced energy efficiency, increased greenhouse gas emissions, and yield gap creation. Conventional and intensive farming have increased production costs and reduced farmer income. In contrast, conservation farming with 30% less energy and 27% less emissions is considered a superior model of environmental sustainability. This gap creates four commercializable entrepreneurial opportunities: a plant nutrition smart management consulting company with income from fertilizer savings, a conservation agriculture services company aimed at reducing fuel consumption by 30%, a "Green Wheat" brand with low carbon footprint and potential for higher prices, and a specialized agricultural machinery operator training institute to reduce fuel consumption by 20%. These businesses are not only economically viable for entrepreneurs but also help preserve basic resources and reduce environmental pollution by reducing dependence on chemical inputs and fossil fuels. Policymakers are recommended to prioritize four actions: providing low-interest loans (4-8% interest) through the Agricultural Bank to entrepreneurs active in plant nutrition consulting and conservation farming services, granting 5-year tax exemptions to knowledge-based companies active in conservation agriculture and farm management consulting, establishing a domestic carbon credit market by the Environmental Protection Organization so farmers can earn additional income from reducing their greenhouse gas emissions, and developing national standards for "Green Wheat" and "Expert Fertilizer Applicator" by the Plant Protection Organization and the Soil and Water Research Institute to build market trust and transparency for consumers. Implementation of these measures will help increase farm economic productivity while contributing to the sustainability of wheat production and reducing environmental risks.